Political approaches to sustainability? Flashcards
(15 cards)
What is globalisation?
Process of intensification of cross border social interactions due to declining costs of connecting distant locations through communication and the transfer of capital, goods and people.
What does globalisation impact?
economic systems - global financial systems, international trade flows, global value chains.
environmental systems - global climate change, environmental issues related to economic specialisation, cross border pollution.
social systems - global flow of information, global movement of people, universal principles (UN)
What was businesses political role in the past?
no international trade and foreign investment (clear division of labour between states and business).
- companies need to follow jurisdictions in their nation state.
- sovereign states can force companies to follow legislative rules and regulations, states determine the use of force on their territory
- companies follow interests within the boundaries of state regulations.
What is businesses political role today?
globalised world, previous division of labour has now been blurred.
- states no longer have a power monopoly - multiple systems of jurisdictions and value communities e.g. UN
- weakening democratic control - national govs have less control over production processes.
- multinational corporations are not bound to one but navigate different legal systems
- cross-border issues many sustainability issues - climate change, transcend borders.
What are governance gaps?
businesses operate in an under regulated global economy, with governments often unable to uphold citizens basic rights.
Strict labour division between businesses and governments do not hold anymore - changing relationship between business and politics
Why is the world increasingly characterised by governance gaps?
Occurring between the scope and impact of economic forces and actors and the capacity of societies to manage their adverse consequences. It also has been referred to as a ‘regulatory vacuum’.
Means businesses are political actors = businesses especially multi-national corporations increasingly play a role in providing public goods
What are public goods?
Non-rivalrous (one persons doesn’t diminish the availability for others) and non-excludable (no one can be excluded from benefitting) regardless of contributions to the provisions of the good e.g. clean air, road lights.
How are businesses economic and political actors?
Businesses and multi-national corporations, contribute to addressing public goods and social issues or engage in self regulation.
Greater political role of business has implications for corporate responsibility - with increased political influence comes responsibility.q
How do businesses participate in voluntary global influence?
To fill governance gaps, forms of voluntary governance have emerged, tend to be collaborative and span across different states or regions and involve different actors (govs, NGOs)
e.g. UN through sustainable development goals. Self regulation by business take on more responsibility for their actions through voluntary self-regulation at organisational or industry level e.g. joining multi stakeholder initiatives (FSC)
What is FSC?
Certification system for sustainable forest management. FSC governing structures include economic, enviornmental and social interests, over 210 mil hectares of forest are certified, uptake by brands like IKEA.
Has weak enforcement, power imbalances between members.
What is a multi stakeholder?
Have mechanisms that make use of standards, principles, organisation learning, certification mechanism or verification mechanisms. Scope ranges from regional to global.
How do businesses try to influence national politics?
Corporate political activity (lobbying) for state regulations/issues.
- direct financial incentives - campaign and party to donations to influence political decision -makers e.g. Elon Musk to American PAC
- direct information provision - commissioning reports with selective information or to manipulate agendas e.g. mis information and denial of climate change by fossil fuel industry.
- indirect influence - gaining support from individual votes, fake grass movements e.g. US telecom companies funded fake grassroots campaigns opposing net neutrality.
How to businesses try to influence international policies?
Key personnel at UN conference have close industry ties, industry lobbying on countries positions at UN conferences when debating international agreements.
Increased business participation in UN summits - businesses are no longer partners but drivers of sustainable development.
How are businesses involved in CEO activism?
MNCs increasingly take a stand on sustainability issues. Polarising socio-political issues can trigger CEOs to publicly speak out e.g. Nike on BLM.
CEOs occupy a privileged position from which to organise affairs and make voices, opinion, sustainability issues heard.
CEOs increasingly inclined to use post as a lever for political and social change.
In present age silence is more conspicuous, CEOs concerned about their legitimacy, career prospects and ultimately their legacy and want to be on the right side of history.
What are Elon Musk’s CEO activism patterns?
Musk portrays himself and Tesla ideologically open, speaking to a polarised media. Diplomatic to depolarise media views of Tesla.
Chameleon pattern - environmental claims, nationalist claims, globalist claims, libertarian claims.
Diplomacy pattern - bridge building claims, entrepreneurial spirit claims
